November 28, 2016
The Government has published the statutory rates for maternity pay, paternity pay, shared parental pay, adoption pay and sick pay from April 2017.
The current weekly rate of statutory maternity pay, adoption paternity pay, shared parental pay is £139.58, or 90% of the employee’s average weekly earnings if this figure is less than the statutory rate. From April 2017 the rate will increase to £140.98 per week.
The rates normally increase each April in line with the consumer price index (CPI). A 0.1% fall in the CPI in the year to September 2015 meant that there was no increase to the rates in April 2016. The rates have been frozen since 5 April 2015.
However, the CPI has increased by 1% in the year to September 2016, which is reflected in the rates for 2017/18.
“Their publication well in advance of April 2017 will help employers to plan their budgets for 2017/18, and to prepare amendments to their policies and documents on family-friendly benefits for April 2017.”
The rate of statutory sick pay is also increasing from £88.45 to £89.35. This increase is expected to occur on 6 April 2017.To be entitled to these statutory payments, the employee’s average earnings must be equal to or more than the lower earnings limit. The lower earnings limit is increasing from £112 to £113 in April 2017.